That New York Times (NYSE: NYT) Company’s 2009 as a tough one is not a secret. How tough and how much did they have to do to “realign” the cost structure? Some numbers from its annual report 10-K filed yesterday.
– Reduced operating costs by about $475 million in 2009 and by approximately $136 million in 2008.
– Staff reduction efforts and other cost-saving initiatives lowered compensation-related costs and benefits expense by approximately $95 million.
– $53.9 million pre-tax charge for severance costs.
– Reduced the number of full-time equivalent employees by 18 percent; amended pension plan for non-union employees to discontinue future benefit accruals and freeze existing accrued benefits effective Dec 31, 2009; froze supplemental executive retirement plan that provided enhanced retirement benefits to select members of management; and reduced health benefits for retirees.
– Outsourced the editing function of The New York Times News Services Division to The Gainesville Sun, part of its Regional Media Group.
– In 2009, closed City & Suburban, which operated a wholesale distribution business that delivered The Times and other newspapers and magazines to newsstands and retail outlets in the New York metropolitan area; that improved its operating results in 2009 by about $35 million, excluding one-time costs.
– In 2009, sold off WQXR-FM to Univision Radio Inc. and WNYC Radio for a total of about $45 million. Sold the TimesDaily in Florence, Ala. for $11.5 million and divested surplus real estate at the Regional Media Group. It is still exploring the possible sale of its interest in NESV (Boston Red Sox).
– Total debt level at year-end 2009 decreased to $769 million, from $1.1 billion at the end of 2008.
– Decreased capital expenditures to $45 million in 2009, down from $127 million in 2008.
– For 2010, it projects capital expenditures to be between $40 and $50 million; depreciation and amortization to be $125 to $130 million and interest to be $85 to $90 million.
– About 66 percent of the weekday and 73 percent of the Sunday circulation was sold through subscriptions in 2009; the remainder was sold primarily on newsstands.
– IHT’s circ is decreasing: end of 2009 was about 219,256 and end of 2008 was 239,689.
– About Group: About 5 percent of NYT Co’s total revenues. Cost-per-click advertising represented 59 percent of the group